The cryptocurrency focused on the Monero private life (XMR) has experienced a clear sale in the last three days, with open-term positions reaching their highest level since December.
On Wednesday, the largest confidentiality of market capitalization fell to $ 325 on Kraken, having culminated at $ 420 on Monday, according to Data Source TradingView.
The sale follows a dazzling increase of seven weeks from $ 165 to $ 420, supposedly led by a favorable American regulatory perspective and an imminent FCMP ++ upgrade, which will improve the quantum resistance of Monero by providing a secret before.
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Open interest increases
The drop in prices is characterized by increased participation in the term market, where the number of active or open contracts reached 161.37K XMR, the highest count since December 20, according to Data Source Coingecko. The OO has increased by 20% in the last three days.
An increase in open interest in parallel with a price drop is generally interpreted as representing a lowering feeling, with more traders taking short positions in anticipation of a drop in prices.
Financing rates are positive
This is not necessarily the case with XMR, because perpetual financing rates continue to be positive, indicating a bias for long positions. The financing rates, loaded every eight hours, represent the cost of the holding of the betting on leverage, with positive values representing a domination of long bulls.
Consequently, the increase in open interests of XMR probably represents a mentality “buying the decline” – traders taking long positions on the drop in prices, anticipating rapid recovery.
